Following the European governments’ unveiling of their latest rejoinder to a broadening sovereign-debt crisis, The European Central Bank (ECB), said that, in a move to “ensure depth and liquidity in those markets which are dysfunctional,” it will purchase European government and private bonds.

The move would represent a noteworthy boom for the ECB, which had earlier shown some hesitation in following the US Federal Reserve and Bank of England, in terms of buying even government debt in the open market.

Shoring up the ECB’s aggressive move – which the ECB insists will not affect the total amount of credit it provides to the Euro Zone -, the Federal Reserve has also decided to restart a program used during the 2008 financial crisis – whereby it lent the ECB US dollars in exchange for euro, enabling the ECB to further lend dollars to European bankers who did not have enough US currency.

In addition, the Fed also said that it intends making dollars available to the central banks of Britain, Canada, and Switzerland too.

Terming the ECB’s decision to buy European bank and private bonds “very good news,” Sebastien Galy, currency strategist at BNP Paribas in New York said that the move might lead investors to head back into the kind of risky assets – like emerging markets and stocks - which they had been selling out of late last week.